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Home My WebLink About2010-06-22 - AGENDA REPORTS - CAMPAIGN CONTRIBUTION LIMITS (2)NEW BUSINESS DATE: SUBJECT: DEPARTMENT Agenda Item: LQ's— CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval Item to be presented by: June 22, 2010 c. Councilmember Ferry/ CAMPAIGN CONTRIBUTION LIMITATIONS AND DISCLOSURE City Manager's Office RECOMMENDED ACTION City Council introduce, conduct first reading and pass to second reading an ordinance entitled, "AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, AMENDING SANTA CLARITA MUNICIPAL CODE CHAPTER 7.02, CAMPAIGN CONTRIBUTION LIMITATIONS AND DISCLOSURE." BACKGROUND Existing state law outlines campaign contribution and disclosure requirements with which candidates for state and local elective office must comply. Local jurisdictions may enact ordinances that are more restrictive than state law for elective office of the particular jurisdiction. In the absence of more restrictive campaign contribution and disclosure measures enacted by a local jurisdiction, state law shall prevail as the governing regulations. It is appropriate to periodically review Santa Clarita Municipal Code Chapter 7.02 entitled Campaign Contribution Limitations and Disclosure. This code section was last amended by the City Council in October 2003. The existing Municipal Code allows candidates for City Council to receive anonymous contributions up to a maximum of $200. The Code further provides that all contributions of $100 or more shall be disclosed by reporting the name, address and employer of each contributor. The Muncipal Code also limits individual contributions by any person, which also includes businesses and political action committees, to a maximum of $360 per election contest. In an effort to enhance the transparency of Santa Clarita's municipal elections; establish Ordinance passed to Second reading consistency between the various political jurisdictions with the Santa Clarita Valley, and with a desire to lessen the influence of Independent Expenditures,,the following changes to Santa Clarita Municipal Code Chapter 7.02, Campaign Contribution Limitations and Disclosure, are proposed. 1. Prohibit the ability for anonymous contributions to be made to a candidate, political committee, broad-based political committee, or ballot measure committee. An anonymous contribution is one in which the contributor is unknown. This is different from someone who contributes to a candidate or committee at a level that is not required to be reported, but the candidate or committee knows who made the contribution. Under the existing Municipal Code, anonymous contributions of less than $100 may be accepted by a candidate or committee up to a total maximum from all sources of less than $200. The ordinance under consideration proposes to prohibit anonymous contributions in any amount. Therefore, the source of all campaign contributions shall be known to the candidate and/or committee that receives them. 2. Require that the threshold for disclosing contributions on campaign reports, available to the general public, shall be changed from $100 or more to any amount received by a candidate or committee. Existing law enables contributors to donate less than $100 to a candidate or committee controlled by a candidate without having their identity publicly disclosed. The ordinance under consideration proposes to require full disclosure of the name, address and employer of any person contributing any amount to a candidate or committee controlled by a candidate. This shall result in the voters and the general public being able to know the source of every contribution to a political candidate. 3. The individual limit for contributions is currently $360 per election contest. A significant number of cities and every other political jurisdiction within the Santa Clarita Valley, including all of the local school districts, water boards, and the Los Angeles County Board of Supervisors permit individual contributions up to a maximum of $1000. A comparison chart of contribution limits from ten cities and the various political jurisdictions within the Santa Clarita Valley is attached to this report. Recent Santa Clarita municipal elections suggest a trend toward the increasing utilization of independent expenditures. An independent expenditure is an expenditure of money to promote or oppose a candidate or position on a ballot measure that is done without the knowledge of the candidate(s) or committee(s) benefiting from the expenditure. There are no limitations on the amounts for independent expenditures and any attempt to regulate them is likely to be futile. By increasing the contribution threshold to candidates and committees controlled by a candidate, sufficient sums can potentially be raised by candidates and committees to lessen the impact of the independent expenditures. It is recommended that the City Council enact reforms to Santa Clarita Municipal Code Section 7.02; eliminating anonymous contributions, increasing public disclosure of all contributions, and lessening the influence of independent expenditures in Santa Clarita municipal elections by increasing the individual level of contributions to candidates and committees controlled by a candidate. z. ALTERNATIVE ACTIONS 1. Adopt some, but not all three, of the proposed changes to Santa Clarita Muncipal Code Chapter 7.02. 2. Make no changes to Santa Clarita Municipal Code Chapter 7.02. 3. Other direction as determined by the City Council FISCAL IMPACT All City Attorney, City Clerk and other staff time, plus collateral materials resulting from changes to the Santa Clarita Municipal Code, as outlined in this agenda report, are contained within the adopted 2009/10 City Budget. ATTACHMENTS Ordinance - Campaign Contribution Limits Comparison Matrix 3 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA AMENDING 7.02 OF TITLE 7 OF THE CITY OF SANTA CLARITA MUNICIPAL CODE PERTAINING TO THE CAMPAIGN CONTRIBUTION REGULATIONS. THE CITY COUNCIL OF THE CITY OF SANTA CLARITA ORDAINS AS FOLLOWS: SECTION 1. Amendments of Chapter 7.02. Chapter 7.02 of Title 7 of the City of Santa Clarita Municipal Code is amended and restated to read as follows: 7.02.030 Contribution Limits. A. Contributions. No person shall make, and no candidate for elective office or campaign treasurer shall solicit or accept, any contribution which would cause the total amount contributed by that person to that candidate or committees controlled by that candidate to exceed one thousand dollars ($1000.00) per election contest. B. Disclosure of Contributors. Candidates shall report the names and addresses of all persons who contribute to their campaign. Such disclosure shall also include the name and address of the contributor's employer. If the contributor is self-employed, the candidate shall report the name and address of the contributor's business. C. Loans. No person shall make, and no candidate for elective office or campaign treasurer shall solicit or accept, any loan which would cause the total amount contributed to the candidate or committees controlled by the candidate to exceed one thousand dollars ($1,000) per election contest. D. Anonymous Contributions. No person shall make an anonymous contribution or contributions to a candidate, political committee, broad-based political committee, ballot measure committee or any other person. An anonymous contribution received by a candidate or such a committee shall not be kept by the intended recipient, but instead shall be paid promptly to the Treasurer of the City. No candidate for elective office or campaign treasurer shall solicit or accept anonymous contributions from any sources. E. Extension of Credit. No person shall extend credit, and no candidate for elective office or campaign treasurer, or political committee, broad-based political committee or ballot measure committee shall solicit or accept any extension of credit which will extend beyond ninety (90) days from the date upon which the debt is incurred by the candidate, or political committee, broad-based political committee, or ballot measure committees. y F. Personal Funds. The provisions of this section shall not apply to a candidate's contributions of his or her personal funds to his or her own campaign contribution account. G. Commercial Loans. The provisions of this chapter regarding loans shall not apply to loans made by a commercial lending institution in the lender's regular course of business on terms available to members of the general public and for which the loan recipient is personally liable. SECTION 2. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 3. Publication. The City Clerk is directed to cause this ordinance to be published in the manner required by law. PASSED, APPROVED AND ADOPTED this day of , 2010. , Mayor ATTEST: Sarah Gorman, City Clerk APPROVED AS TO FORM: Carl K. Newton, City Attorney 5 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES )SS: CITY OF SANTA CLARITA) I, Sarah Gorman, City Clerk of the City of Santa Clarita, hereby certify that the foregoing Ordinance No. was passed and adopted by the City Council of the City of SANTA CLARITA at a regular meeting of the Council held on the day of 2010 and that such Ordinance was adopted by the following vote: AYES: NOES: ABSENT: Sarah Gorman, City Clerk I/ JLocal Agencies LA County Board of Supervisors Newhall School District Saugus School District Sulphur Springs School District Hart School District Castaic Lake Water Agency Newhall Countv Water District I Cities Glendale (207,157) Irvine (209,806) Lancaster (145,243) Oceanside (178,806) Oxnard (194,905) Palmdale (147,987) Pasadena (148,126) Rancho Cucamonga (174,308) Simi Valley (125,657) Thousand Oaks (128,650) No Information R $1,00 $1,00 $1,00 $1,00 $1,00 $1,00 $1000 (2008) *CP' Currently $440 (adjusted by CPI every 2 years) $1,000 No Limits $1,000 $1,OOC $1,OOC No Limits $1,OOC $360 7